HomeMy WebLinkAboutItem 03.aCity of Lakeville
Planning Department
Memorandum
To:
City Council
From:
Frank Dempsey, Associate Planner
Copy:
Justin Miller, City Administrator
Allyn Kuennen, Assistant City Administrator
Daryl Morey, Planning Director
Zach Johnson, City Engineer
Jerilyn Erickson, Finance Director
Date:
August 19, 2015
Subject:
August 24, 2015 City Council Work Session Regarding Sale of City
Owned Property
Bethlehem Baptist Church has submitted a request to purchase a 15 foot wide by 600
foot long (9,000 sf) strip of City- owned property located along the south side of a12
acre parcel owned by the church east of Kenrick Avenue and north of the Holiday
Inn/Rudy's Redeye Grill. Bethlehem Baptist Church hopes to construct a 66,000 square
foot, 1168 seat church on the property in the near future. Church representatives
believe the 15 foot wide strip of City -owned property would allow them additional
area to accommodate their site design including their proposed main driveway to and
from Kenrick Avenue. It is likely that all or the majority of the 15 foot wide property
would be encumbered by a drainage and utility easement to accommodate
stormwater drainage.
The City acquired the property in 1994 from the State of Minnesota through tax
forfeiture at no cost. City Resolution 94-46, dated March 7, 1994 states that the
property was acquired for "potential use as storm sewer right-of-way". The tax -
forfeiture deed from the State includes this use restriction.
If the City Council agrees to move forward to convey the property to Bethlehem
Baptist Church, the City would need to clear title to the property by removing the use
restriction. This would require that the City re -convey the property to the State of
Minnesota with a request to reacquire the property at fair market value without the
use restriction. The re -conveyance and acquisition of the property is handled by the
County on behalf of the State. The County Board would be responsible for setting the
acquisition price following City Council approval of a resolution to move forward with
the transaction.
If the City Council supports the conveyance of this property to the church, staff
recommends that Bethlehem Baptist Church purchase the property based on the price
established by Dakota County, together with all fees and costs associated with the
process to obtain a clear title including staff review, legal and recording fees. Staff
recommends that Bethlehem Baptist Church pay an escrow to the City, to be
determined, for the estimated amount of staff and legal processing costs prior to the
City initiating the process for acquisition of the property from the State.
The property is currently assessed at $400.00 ($0.43 per square foot). The City would
require as a condition of conveyance of the property to Bethlehem Baptist Church that
the property be combined with the church property through Zoning Lot designation
and then included in a preliminary and final plat when the church develops their
property.
City staff contacted the owner of the Holiday Inn/Rudy's Redeye Grill property to
inform them of the church's interest in purchasing the property. The hotel/restaurant
property owner stated they were not interested in the property.
City staff requests City Council input on whether to proceed with the sale of the
subject property.
Exhibits
Aerial Photo
Church Sketch Plan
Resolution 94-46
2
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Date
March 7, 1994
Motion by
Harvey
CITY OF LAKEVILLE
RESOLUTION
Resolution No. 94-46
Seconded by
Sindt
RESOLUTION APPROVING APPLICATION
FOR CONVEYANCE OF TAX FORFEITED LAND
WHEREAS, Parcel 22-02500-012-54 legally described
as: SECTION 25 TWN 114 RANGE 21 N 15 FT OF PT OF S 1/2 OF SW 1/4
DESCRIBED AS FOLLOWS COM NE COR W 760.32 FT TO BEG S 1D 10M 58S
W 500 FT W 671.20 FT TO C/L MTH 165 N ON C/L 500 FT TO N LINE E
ON N LINE TO BEG is tax forfeited and has potential use as storm
sewer right-of-way; and
WHEREAS, Parcel 22-32902-010-00 Highview Heights 3rd
Add Outlot A is tax forfeited and has potential use as road
right-of-way.
NOW, THEREFORE, HE IT RESOLVED by the Lakeville City
Council that the City Clerk is directed to submit to the Dakota
County Auditor the Application by Governmental Subdivisions For
Conveyance of Tax Forfeited Lands for the above stated parcels.
APPROVED AND ADOPTED by the City Council of the City
of Lakeville, Minnesota, this 7th day of March, 1994.
CITY O EVILLE
BY:
Du a Zaun, 10yor
ATTES
Charlene Friedge , City Clerk